Digiting B2B payments is generally a one -way street. Companies do not do it typically Return to paper payments after adopting technological progress.
But that does not mean that some companies do not yet need a little help to roll the ball.
Although the digitization of B2B payments can be different for each company, the pressures on the organizations to be innovated come from several shared angles which may include Concerns of fraud, cross -border complexityin real time expectationsincreased Security requests and displacement Demography of the workforce.
These factors, as well as many others, converge to create a new payment paradigm where the agility of adapting is a competitive advantage. TAs a result, in certain operational relationships, automation and digitization of B2B payments are no longer an avant -garde ambition – it becomes a necessity. The five reasons below explain why.
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Automation and AI create an imperative of efficiency in B2B
Automation has long been an cornerstone of payment innovation, but the infusion of artificial intelligence (AI) takes it to new heights. Companies are increasingly deploying AI to improve the treatment of invoices, manage the work flows accounts to be paid (AP) and predict trends in cash flows with unprecedented precision.
AI systems can help has Rationalize the reconciliation processes, identify the differences before turning into disputes and providing predictive information that helps companies optimize their cash positions.
“Business Often adopted Party payments automation, ” Holly hold outdirector, B2b Payment solutions and management of card products America Banksaid Pymnts. “It is important to ensure that we capture the different AP priorities, IT, Treasury And Purchasing stakeholders. »»
Pymnts Intelligence Research revealed that more than a third of companies on the intermediate market Use AI for at least half of their AP processes. For this reason, these companies are 47% less likely to report high levels of operational uncertainty. This is an essential advantage, because they often operate with stricter margins and have greater sensitivity to disruption of cash flows than greater competitors.
At the end of the day, Pymnts found The question is not whether companies will automate and evolve their rear offices. That’s how it quickly and effectively They can do it.
“For a long time, the industry offered Paper -free alternatives to payments ”, including virtual cards and real -time payments are about to gain even more traction, Alex HoffmannDirector General of North America at Pay Edenredsaid Pymnts. “What Genai adds in addition to all this is that beyond payment, we can automate the payment invoice cycle. »»
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Prevention and security of fraud continue to prove the weaknesses of the document
Pymnts Intelligence noted that, despite their drop in popularity for personal transactions, checks always represent almost 40% of the American B2B payment volume. Actually, 68% of companies relied on checks for B2B payments in 2023 and 70% of companies said they Don’t forget To interrupt their use over the next two years.
“If you have not operated your supply process appropriately, (and) if you do not have a certain level of maturity, you are receptive to fraud,” Michael Van KelenThe director of the industry, the supply to COUPA, told Pymnts in a interview poster in February. “Prevention of fraud is not only a financing problem or a supply problem – it is a commercial imperative.”
Many companies can tend to perceive checks as at low cost or “free” but manual treatment creates hidden expenses. Time, work And Delayed payment cycles are added to these costs and fraud losses only increase the financial burden.
“A lot of fraud is in checks. If you cut checksYou have reduced 60% of fraud there, ” Ernest Rolfsonfounder and CEO of Finexiosaid Pymnts.
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Instant payments lead to real -time expectations
The consumption of payments has shaped expectations in the B2B arena. Customers are now waiting for instant transactions, reflecting the ease and speed of P2P platforms like Venmo or Zelle. In response, companies adopt real -time payment solutions to meet the growing demand for immediacy.
According to Pymnts Intelligence, Almost 65% Companies have indicated that their customers are now expecting faster payments, especially when they treat high -value transactions. Real -time payment infrastructures not only improve customer satisfaction, but also improve cash flow management – a critical factor for companies that sail on the volatile economic environment of today.
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Generational shifts: evolution of labor expectations
The transformation of B2B payments is also more and more be Pushed by the modification of demographic data within the workforce. While generation Y and generation Z professionals occupy leadership roles, their preferences and their expectations influence the way companies approach payments.
These native digital generations prioritize friendly platforms, transparent integrations and automated solutions. They are also more likely to defend integrated financing solutions which offer greater transparency and efficiency. Consequently, companies invest in intuitive and rationalized payment systems that correspond to the expectations of a younger and warned workforce.
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Cross -border innovation helps to fill the world markets
The rise of digital commercial models has only amplified the need for transparent cross -border payments. As companies develop internationally, the navigation of complex regulatory landscapes and the attenuation of the risks of fluctuation of money becomes essential. Innovative Fintech solutions take up these challenges via multi-monnactor accounts, a currency conversion in real time and establishments powered by blockchain.
In addition, collaboration between traditional financial institutions and agile fintechs has led to more effective payment rails designed to facilitate cross -border transactions. The demand for rationalized international payment solutions is particularly pronounced among mid-marketing companies seeking to extend their global footprint incur Prohibitive transaction costs.
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The convergence of these trends accelerated The pace of change in the B2B payment ecosystem. Although innovation is essential, it must be balanced with safety, compliance and user -centered design. While automation and AI continue to progress, cross -border solutions become more robust and generational preferences shape commercial expectations, companies will have to remain agile to prosper.
In the end, those Exploiting These trends in creating transparent, secure and scalable payment solutions will be best placed to take advantage of future opportunities. The future of B2B payments is now written – by those who are daring enough to embrace the transformation.